Kitron (Buy, TP: NOK60.00) - Pathway to accelerated growth
We are 3% above consensus Q1e sales, as we expect component delivery delays to be largely resolved, but 2% below on EBIT (despite our forecasts for improved margins in Norway), as we expect this to be offset by lower margins in Asia versus Q4. In our view, the positive outlook for D&A calls for a longer-term view on valuation. We reiterate our BUY and have raised our target price to NOK60 (40) on our raised estimates given what we view as an improved outlook and still several potential catalysts for the stock.Kitron and its subsidiaries comprise one of Scandinavia's enterprises in the development, industrialisation and manufacturing of electronics for the data/telecom, defence/marine, medical equipment and industry segments. The group has operations in Norway, Sweden, Lithuania and China. Co.'s activities are characterised by complex manufacturing processes and expertise. Co. has chosen to focus its sales and marketing activities within the Data/Telecom, Defence/Marine, Medical equipment and Industry market segments. Customers typically provide products or equipment for professional use. Co. is a typical high mix low volume Electronic Manufacturing Services company.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.